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Insurance is another name for “Legacy Planning”

abhishek — Thu, 23 Sep 2021 06:30:00 GMT

Insurance is another name for “Legacy Planning”

23-Sep-2021 23-Sep-2021'

With the year 2021 coming to a close in a few months, it is natural to find your mind drawn towards your finances as well as your overall fiscal health. After all, the end of the year is a good time to go over one’s investments and other planning and critically review how far they have come in the past year.

Moreover, some readers may even be thinking about the next generation (their children) when planning investments for the New Year 2022. These are investors who are already thinking about their legacy; that is, what they are leaving behind for their close ones.

If you are among these forward-thinking investors, without a doubt you have a desire to leave behind a healthy corpus for your family. This is where insurance plays a major role. By its very definition, insurance exists to nullify the financial losses an individual/family faces in case of adverse circumstances.

Let’s see why it is important to have insurance in your portfolio:

If you are involved in an accident and admitted to a hospital, you not only have to shell out lakhs for treatment, but you are not earning for a period of 2 – 3 months. This can derail your ongoing investments, divert money that you have earmarked for your child’s education, and so on. A health plan or a personal accident cover will allow you to pay off the hospital bills and continue your investments too!
Similarly, if you fall victim to a critical illness like cancer or cardiac arrest, your critical illness plan will step in and nullify the entire negative financial effect of recovering from such serious illnesses.
A term plan, which is crucial to have in your portfolio, protects your loved ones if the worst were to happen to you. In the case of your demise, the term plan pay-outs will ensure your family’s lifestyle does not get affected, your children continue their education, and there is more than enough money for daily expenses.

In conclusion, it is important to not just think in terms of making wealth, but also in terms of stopping hard-earned money from just fizzling away due to adverse circumstances. This is the sign of a mature investor.

In the year 2022 and in future, let insurance provide support to your portfolio!

Queries? Get in touch with a OneInsure expert:

M – 86559-86559 | E – support@oneinsure.com

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Just having a Retirement Plan isn’t enough!

abhishek — Thu, 16 Sep 2021 06:30:00 GMT

Just having a Retirement Plan isn’t enough!

16-Sep-2021 16-Sep-2021'

abhishek

Any endeavour that lasts as long as retirement planning does—20 to 40 years—faces the risk of weakening and reduction, no matter how confident you were when you first ventured into it. Retirement planning needs regular checks and balances to ensure your corpus is there for you when you need it most; that is, when your salary has stopped due to retirement.

To retire into a rich and independent second innings full of foreign travel and splurging on grandchildren, keep these 5 DON’Ts in mind when it comes to your retirement.

DON’T delay Retirement Planning

Research suggests that in India only 3 out of 10 people save regularly for their retirement. The rest delay it, thinking that they have a lot of time left or they will start investing when their salary increases. This is incorrect thinking. Delaying will directly result in you losing the benefits of saving early. Let’s see an example.

When 30-year-old Kishore invests Rs 3,000 in a retirement plan for 30 years, he receives a pay-out of Rs 44 lakhs. However, when 35-year-old Akshay invests Rs 3,000 in a retirement plan for 25 years, he receives a pay-out of only Rs 28 lakhs. This is a difference of Rs 16 lakhs because of starting merely 5 years later.

DON’T use funds meant for Retirement

One of the biggest mistakes of young or working Indians is that they start using their retirement funds like EPF, PPF, and FD for their emergency requirements or to fulfil their daily needs. Using up your retirement savings thinking you will fill it up later means digging your own grave during retirement.

DON’T save without a goal

Retirement planning is a goal-oriented exercise. Having an idea about how much you will spend every year in your retirement years will help you understand how much you need to invest and where you need to invest, keeping in mind factors like inflation, age, income, expenses, and financial dependencies on you.

DON’T underestimate growing medical expenses

This is again a common misconception in Indians. To fulfil today’s needs, we are ready to compromise on our future needs. Even if you have good health, you cannot avoid age-related health risks. Health emergencies can wash away all your finances, especially in your old age. Despite this, many people fail to buy adequate health insurance cover, which will protect them from rising medical costs in the present and especially the future.

NEVER rely solely on your children to fulfil your retirement needs

Parents being dependent on their children is a common scenario in almost every Indian household. As the child starts earning, parents start relying on their income. This is a serious and common mistake made by many. By not planning for your retirement now, you will financially and emotionally burden your children in the future.

It’s never too late to make things right! Fix your retirement planning mistakes NOW.

M – 86559-86559 | E – support@oneinsure.com

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Considering a health plan to get ahead of a possible Third Wave of the pandemic?

abhishek — Tue, 07 Sep 2021 06:30:00 GMT

Considering a health plan to get ahead of a possible Third Wave of the pandemic?

07-Sep-2021 07-Sep-2021'

abhishek

As our readers already know, health insurance plans have emerged as one of the fundamental pillars of the urban Indian’s financial portfolio in the 21st century. Most of our readers may also be aware of the major benefits of a health plan. Let’s revise them quickly:

Health plans cover hospitalization costs in case of planned treatments, surgeries, and even emergencies in return for relatively affordable premiums. If you visit a network hospital, the treatment can even be cashless.
A health plan protects you and your family from the financial burden of expensive treatments.
Family-floater plans allow you to cover the entire family under a single health plan for marginally higher premiums.
High-quality treatments with no compromises.
Tax benefits under Section 80(D).
Having a health plan ensures you are not fooled at hospitals with extra charges and unnecessary procedures.

When it comes to health plans, the points mentioned above are relatively well known. What aren’t that widely known are the factors that affect health insurance premiums. This article will delve into those briefly:

Age

Age is one of the most important factors that influence premiums. When you buy health insurance, the premium is lower if you are younger. Young individuals have fewer identified or non-identified diseases, and health insurance companies see them as a lower risk of illnesses/procedures and hospitalization. It is advisable to buy health insurance at an early age. However, we would recommend every individual to buy a health insurance to overcome the huge cost of hospitalization which may incur in the event they are diagnosed with an illness/diseases/injury.

Medical History

Yes, your family’s medical history affects your health insurance premiums. Individuals whose families have certain medical history are themselves predisposed to have similar health issues. For example, applicants with a history of cancer, diabetes, and so on in the family may have to shell out additional premium as compared to other applicants who have nil medical conditions in the family.

City of Residence

If you live in a city where the cost of living is high and life is hectic, your health insurance premiums are going to be higher.

Smokers / Tobacco Chewers Beware!

Most health insurance companies charge a higher premium or decline your application altogether if you have the habit of smoking or chewing tobacco. Such applicants tend to be prone to life-threatening diseases like cancer, heart ailments, and a host of others.

Planning to buy a health insurance policy to get ahead of a possible Third Wave of the pandemic? Speak to a OneInsure expert today:

M – 86559-86559 | E – support@oneinsure.com

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Top 4 insurance pointers every car owner should know about

abhishek — Thu, 02 Sep 2021 06:30:00 GMT

Top 4 insurance pointers every car owner should know about

02-Sep-2021 02-Sep-2021'

abhishek

In this short piece, readers will get to know about 4 important pointers when it comes to car insurance.

Transferring your policy to another insurer does not affect your NCB

Your No Claim Bonus (NCB) benefits stay even when you shift your policy from one insurance company to another. An NCB is a discount you get for every year you do not make a claim against your motor insurance. NCBs tend to be rather substantial, and it gets accumulated year after year, provided that you do not make a claim.

Although the NCB stays even when you transfer your policy from one provider to another, see to it that you file for it within ninety days of the expiration of your old cover, or else the accrued benefits are no longer applicable.

Comprehensive car insurance covers a lot more than just accidents

That’s right, comprehensive car insurance policies cover non-collision damages, theft of vehicle, and more, in addition to covering your losses in case your car is involved in an accident. With a comprehensive car insurance policy, you will be protected against losses or damage caused to your car from natural as well as man-made disasters. Damages caused by fire, earthquakes, flood, riot and incidents like theft of vehicle tend to be covered by the insurance company, so make sure you read the policy documents carefully.

Car insurance rates vary quite a bit between insurance providers

When you’re in the market for a car insurance policy, you will find that insurance companies charge different premium rates for insuring the same vehicle. This is because every insurer will have their own method of calculating risk. Say, if an insurance company receives a large number of claims from owners of a particular car brand, then the insurer may charge higher rates for extending coverage to people with vehicles of that brand. So, before buying an insurance policy for your vehicle, make sure to compare the rates offered by each insurance provider to cover your vehicle.

Whatever the age of your vehicle, insurance is mandatory!

The Motor Vehicle Act of 1988 makes it mandatory for every car plying on Indian roads to be insured. There are no exceptions, whether your car is old or new. You will be charged a fine or even face some jail time if you are caught driving without vehicle insurance.

Before buying any car insurance policy, you must research about its features, benefits, costs, and so on. This helps when a product is presented to you, because you will be able to easily tell if what is communicated to you is honest.

We hope this article has helped you understand car insurance better and cleared any misconceptions you may have had about insuring your vehicle. If you have any queries, do write to us at support@oneinsure.com.

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Invest for a short period, then relax and watch your money grow with STPs!

abhishek — Mon, 30 Aug 2021 06:30:00 GMT

Invest for a short period, then relax and watch your money grow with STPs!

30-Aug-2021 30-Aug-2021'

abhishek

Every individual engaged in business in India knows the value of making hay while the sun shines. They realise that investments should be made while the inflow of money is high. Those investments will one day come of use in a time of need, when the inflow of money is low or when business is badly affected due to factors beyond one’s control. In essence, they realise the value of short-term investments.

However, the advantages of short-term investments are not restricted to businessmen alone. Even salaried individuals can and should opt for Short-Term Plans, which have the ability to quietly keep vesting while you take care of your family’s expenses.

Short-Term Plans enable investors to start investing when they have little or no liabilities and then stop once loans and familial liabilities don’t allow much savings. What’s more, while traditional plans require you to continue investing for 20+ years, Short-Term Plans avoid this issue altogether.

Let’s understand more:

Short-Term Plans in brief

Short-Term Plans are investment instruments that allow you to invest for a short period (as low as 5 years) and then stop investing when your young family demands the lion’s share of your income. The money that you have invested keeps growing steadily and at maturity, you receive a lump sum that can be used for important milestones like a child’s higher education or marriage, to buy a new car, or even to plan a foreign vacation for the family.

A quick look at the benefits

Short-Term Plans are insurance products offered by all major insurance companies that you can opt for through OneInsure. Here are the benefits of Short-Term Plans:

Make hay while the sun shines! Short-Term Plans allow you to customize when you want to stop payments and when you want the vesting period to end. Since you can decide these right at the start, this gives you the flexibility to choose preferred terms keeping in mind your specific upcoming milestones and life events.
Great for Businesspeople – Although Short-Term Plans are a great financial tool for all Indian householders, they tend to be especially preferred by businesspeople because of the nature of their profession and large but inconsistent incomes that are not guaranteed in the long run.
Great goal-oriented investments – Because of the very nature of Short-Term Plans and the flexibility to choose the policy term at inception, they can be started with certain goals in mind. For example, you can start a Short-Term Plan with an annualized premium of Rs 1 lakh and a premium-payment term of 5 years and a policy term of 15 years when your child is 3 years old. This policy will pay out a good sum of money when your child will be 18 and has to choose a Professional Course after Junior College.
Tax benefits

Discuss Short-Term Plans with an expert:

M – 86559-86559
E – support@oneinsure.com

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Understanding the Use Cases of Personal Accident Insurance

abhishek — Fri, 27 Aug 2021 06:30:00 GMT

Understanding the Use Cases of Personal Accident Insurance

27-Aug-2021 27-Aug-2021'

abhishek

Just a few years ago, no one had heard of term insurance plans. Similarly, just a few decades ago, health insurance did not enjoy the popularity it does today with the urban Indian householder.

On a similar vein, we at OneInsure believe one of the most important financial instruments you can own is a Personal Accident Insurance policy. But why do we say that? In this short article, let’s see some reasons why.

Fills the grey area left by Term Insurance & Health Insurance

A term insurance plan will pay out the sum assured to your beneficiaries in the event of your demise and a health insurance cover will take care of your hospitalization bills if you fall ill. But what if an accident leads to some kind of disability, rendering you incapable of working? To ensure your income does not stop or pause, it is important to opt for Personal Accident Insurance cover.

The wide range of use cases of a Personal Accident policy

In cases where the policyholder is involved in an accident that leaves him/her temporarily incapable of going to work, this insurance policy pays out a daily/weekly benefit till they resume work.

In cases where the policyholder is involved in an accident that leaves him/her permanently incapable of going to work, the policy pays out the entire sum insured. When the injury is such that the disability is partial, a pre-decided percentage of the sum insured is paid to the policyholder.

In case of the unfortunate death of the insured, the entire sum insured is paid to the beneficiary.

What is OneInsure’s Recommendation?

We recommend all earning urban Indian householders to buy this plan. Personal Accident cover is especially important for people who have taken loans because this offers protection towards repayment of the outstanding balance should any mishap occur. When you have a Personal Accident Insurance plan in place, you can be rest assured your loved ones will receive the necessary financial support in emergency situations.

Since accidents cannot be predicted, it always pays to be prepared beforehand. Just as we purchase health and term plans because we know life is unpredictable, a PA Insurance should be opted for to ensure a stress-free time in the aftermath of an accident.

The Personal Accident Insurance plan can be bought as a standalone policy or as a rider along with your health or term plans. While these riders tend to be cheaper compared to standalone PA Insurance policies, we recommend you to opt for the latter.

These policies, whether opted for as a standalone policy or as a rider, are highly affordable and have a wide rage of use cases.

M – 86559-86559 | E – support@oneinsure.com
Be Sure with OneInsure

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Do NOT rely solely on corporate health plan – Opt for Health Insurance today!

abhishek — Wed, 25 Aug 2021 06:30:00 GMT

Do NOT rely solely on corporate health plan – Opt for Health Insurance today!

25-Aug-2021 25-Aug-2021'

abhishek

A good portion of corporate companies operating in India offer Corporate or Group Health Insurance as a benefit along with salary. There is nothing wrong with going for these plans. What IS wrong, though, is relying solely on these plans for your Health Insurance needs.

This short article delves into the reasons why a separate Health Insurance for yourself as well as your family is crucial, owned and paid for by you and no one else. Let’s quickly see why:

The total cover offered is often insufficient

With the constant rise in hospitalization costs, not to mention the heavy financial burden if a family member contracts COVID-19, it has become a necessity to have health coverage of minimum Rs 5 to 6 lakhs for an average male of 30 years earning 10 lakhs per annum who wants to insure his family. In most cases, though, the total coverage offered in corporate health insurance is not more than Rs 2 to 3 lakhs, and you may end up with a health cover that is insufficient to fulfill your needs.

Your employment status is a factor for coverage

One of the major drawbacks of corporate health insurance plans is that it will cover only if you are an employee of the company. The moment you leave the job, your health insurance plan will also leave you. If you do not have an independent cover during the period of unemployment, you and your family is at risk of being uninsured. Moreover, you will not be sure whether the new company will provide you with health cover or not. Also note that buying a health plan later in life is much costlier.

Problems in getting post-retirement coverage at low cost

Individuals who are covered under a corporate health insurance plan will cease to be covered after retirement. In this case, the absence of an independent health plan will force you to get insured at very high costs. Not only that, you will be subjected to a series of medical tests to check your eligibility to be insured in the first place. Also, don’t forget that most senior citizen policies don’t offer coverage for pre-existing diseases after a certain age.

Tax benefits cannot be availed on corporate health insurance

On buying an independent health plan, you can avail tax benefits up to Rs 20,280 under Section 80(D). Moreover, the maximum investment declaration of Rs 65,000 can be made under this Section, because the Section allows taxpayers to claim deductions for health insurance premiums paid for insuring self, spouse, dependent children, and parents. These tax benefits cannot be availed on corporate health insurance.

Corporate health insurance offers restricted customization options

Generally, when you buy an independent health plan, you have the flexibility to customize your plan as per your needs. As per your needs, you can choose Critical Illness clauses, insertions, features, and riders. But this is not the case with corporate health plans. The features you might be looking for will not be there because, in most cases, the employer negotiates the plan with the insurer and chooses the most cost-effective plan.

Who is ultimately benefitting??

Employers and companies generally look out for cost minimization by providing minimum coverage health insurance policies to their employees. Additionally, these plans come with co-payment and room rent limit clauses to keep your employer under low accountability. This is one of the major reasons why corporate health plans are not the solution to your real-world needs. We don’t have to mention separately how medical costs have almost touched the sky in India, with no signs of slowing down.

Looking at the limitations of corporate health insurance plans, it is important for you to have an independent health plan that financially supports you and your family at the time of health emergencies.

E – support@oneinsure.com | M – 86559-86559

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Does your financial planning include Life Insurance?

abhishek — Tue, 24 Aug 2021 06:30:00 GMT

Does your financial planning include Life Insurance?

24-Aug-2021 24-Aug-2021'

abhishek

Many Indians still treat the topic of planning for one’s family’s finances in the case of their unfortunate demise a taboo subject. Planning for and discussing this topic makes us uncomfortable even today.

However, Life Insurance is one of the most crucial parts of the urban Indian’s financial planning. Having regular investments and a large bank balance is very good, but if you’re not around to bring in that monthly salary cheque, your family is sure to fall into poverty or at the very least be forced to heavily compromise on their lifestyle.

Wouldn’t you like to financially protect your loved ones in the event of your demise? Life Insurance protects your loved ones from the financial consequences of your demise. The amount your family receives from the insurance company can be used any way they like – to pay off any pending debts, take care of your child’s school or college fees, and so on. This makes Life Insurance a necessary component of any sound financial plan.

Disciplined savings

Besides being a protection tool, a Life Insurance policy helps you save in a disciplined manner. Investing in a Life Insurance policy inculcates the habit of savings, which forms the key to a successful financial plan. Make sure to pay your premiums on time and enjoy the creation of a good corpus.

Attain long-term goals

What are some of the long-term goals we plan out when we start earning?

Having a house in our name
Owning a car
Paying for our kid’s school and college fees
And many more

A life policy with an adequate cover will help you reach your long-term financial goals. Life insurers offer various kinds of plans that will help you reach a particular or several different financial goals when you opt for the right mix of insurance plans.

Tax-saving tool

One of the several benefits of opting for a Life Insurance plan is that you can claim tax benefits. Under section 80(C) of Income Tax Act, 1961, tax benefits can be claimed on the premium you pay towards your policy. The maximum deduction you can claim under this section is Rs 1,50,000. Additionally, the proceeds from the policy are also tax free under Section 10(10D) of the Income Tax Act, 1961.

When you make life insurance part of your financial planning, you are safeguarding the future of your loved ones. In other words, a financial plan is never complete if you don’t have life insurance! Note that life insurance comes in many shapes and forms, from term insurance to endowment plans and even short-term plans.

Discuss life insurance with a OneInsure expert by calling 86559-86559 or emailing us at support@oneinsure.com.

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Why salaried individuals should opt for Guaranteed Plans ASAP

abhishek — Sat, 21 Aug 2021 06:30:00 GMT

Why salaried individuals should opt for Guaranteed Plans ASAP

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abhishek

Guaranteed Return Plans combine the advantages of regular investments and steady returns with the safety net of life insurance. This unique combination is not present in other financial instruments.

But that isn’t all. Let’s see why guaranteed return plans are so suitable for salaried individuals and why investing in them early is crucial.

Financial stability a MUST in the post-COVID era

A financial portfolio that focuses heavily on equity investments has the potential to be disastrous in the future. Although the market may be doing well for now, history has shown that the market corrects sharply and without warning. When you need your money most, there is a good chance your equity investments will only disappoint.

You need Guaranteed Return Plans to bring balance to your portfolio. These plans have the following advantages, which are important for salaried individuals:

Irrespective of any major change in local, state, central government; global pandemics; or any other event, you are rest assured to get guaranteed returns
Inflation-beating returns
Not market-linked but guaranteed
Tax-free returns between 8% and 9% per annum (presuming 30% tax bracket)
Triple tax exemption benefit – premium-payment, accumulation, and withdrawal phase exemptions
Your life is covered while you are invested

The variety in Guaranteed Return Plans

Here are the different guaranteed return plan options:

Endowment plans
Money-back plans
Retirement or Pension plans
Child plans

Always remember to choose a guaranteed return plan considering your age, income, needs, dependencies, and future goals.

Why investing in these plans early is crucial

As with any investment that has a vesting period, the longer the insurer has your money, the better the returns will be due to the compounding effect. Even a delay of just 5 years means a difference of tens of lakhs of Rupees!

Illustration 1 – Vesting period of 30 years

30-year-old Ramesh starts investing Rs 5,000 monthly until his retirement at the age of 60. If we presume an average interest rate of 9%, he accrues Rs 92.2 lakhs at retirement.

Illustration 2 – Vesting period of 25 years

Ramesh’s friend, Suresh, decides to delay investing for 5 years and finally starts at the age of 35. He too invests Rs 5,000 monthly until his retirement at the age of 60. If we again presume an average interest rate of 9%, he accrues just Rs 56.5 lakhs at retirement.

This is a difference of nearly Rs 40 lakhs due to a delay of just 5 years!

To help you decide and select the best Guaranteed Return Plans, we have a dedicated team of financial experts just a phone call or email away. Do contact us at:

M – 86559-86559 | E – support@oneinsure.com

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Top 3 tips when you are considering child plans

abhishek — Mon, 16 Aug 2021 06:30:00 GMT

Top 3 tips when you are considering child plans

16-Aug-2021 16-Aug-2021'

abhishek

Couples in urban India are no strangers to money matters. In many ways, money is the central theme to an urban couple’s existence. The influence of money is no less when it comes to starting a family. After all, having a child involves a significant diversion of finances to sustain and nurture the new life.

This article won’t elaborate on the vital role of a child plan in an urban couple’s finances. The reader is already well aware of how child plans, with small investments made steadily while your child is growing up, can take care of major expenses like education and even marriage to a great degree.

Instead, this short article will share 3 top tips OneInsure’s experts have listed based on their vast experience.

List down your child’s important milestones before you start looking for child plans: Child plans are basically money-back plans that pay out large sums of money at certain intervals. However, these intervals have to be fixed at policy inception based on your child’s academic milestones. For instance, 20% pay-out when your child is 15 years old, 40% at age 17 and 40% at age 20 will take care of the majority of education-based financial requirements.
Buy a plan within 1 to 2 years of your child’s birth: Although it’s better late than never, the younger your child is when you buy a child plan, the better. The money you invest with the insurance company needs time to compound and become a large sum.
Your lifestyle, the city you reside in, and your premium appetite are important factors: Naturally, factors surrounding your child will play an important part in whether the child plan’s pay-outs will be sufficient to meet education requirements. However, make sure you don’t choose very high premiums, because that might interfere with your financial flexibility to give your child a good, holistic upbringing.

Child Plans can be customised according to your child’s needs. You can also opt for endowment policies, where a lump sum amount is paid at maturity along with bonuses.

E – support@oneinsure.com | M – 86559-86559

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Tax planning done for the Fiscal but still have lump sum you want to invest?

abhishek — Mon, 09 Aug 2021 06:30:00 GMT

Tax planning done for the Fiscal but still have lump sum you want to invest?

09-Aug-2021 09-Aug-2021'

abhishek

Tax planning is not the only goal of investments. This fact is often forgotten due to the pressure of making tax investments and all the other stresses surrounding taxation.

So, you’ve already made your Rs 1,50,000 investments under 80(C) for the year and you still have a large sum of money you want to invest further. In such a scenario, you should not refrain from investing this lump sum just because you will no longer get tax benefits that year.

Money in the bank account has a way of getting spent!

In the scenario mentioned earlier, if you wait for the next fiscal to invest the lump sum money, there is a good chance that not all of it will be there until the next fiscal, and you will end up investing lesser than the amount you originally wanted to invest. Money in the bank account will invariably be spent on luxuries, necessities or something in between!

So why not invest my lump sum in the share market?

Decades of experience has shown that the best way to invest in the share market is via monthly instalments, known as a Systematic Investment Plan (SIP). Lump sum money does not conform well with SIPs, and investing lump sums in the share market is a bad practise due to exposure to risks.

Here, Single Premium Insurance Plans are a better option

Single premium plans are very popular in India as a last-minute tax-saving option. However, they are very handy when it comes to building a corpus as well.

Single premium insurance plans are primarily opted for by those who are looking to invest rather than avail the benefits of an insurance plan. Here are the advantages of opting for single premium plans:

No hassle of remembering premium payments
Start receiving pension-like monthly payments
No hassle of transferring ECS mandates when closing bank accounts
Helps with lump sum cash for important milestones in life; for example, child’s graduation expenses or family vacation

There are several types of single premium plans, such as Immediate Annuity Plans, Deferred Annuity Plans, Traditional Endowment Plans, each with their own advantages. You may call 86559-86559 to discuss any of these plans with designated insurance experts. Optionally, you may reach us at support@oneinsure.com.

Lastly, single premium insurance plans should not be missed by those who fall in the following categories:

Those who have received a sudden but significant sum of money. This sum of money can be anything from your Diwali bonus to the large chunk of money you get when you sell one of your homes.
People in professions where steady income cannot be guaranteed for the long term. For example:

Businesspersons engaged in certain types of seasonal businesses
Sportspersons
Celebrities in the Entertainment industry

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Travel back on your agenda for 2021? Tick these 6 checkboxes to have a safe trip!

abhishek — Mon, 02 Aug 2021 06:30:00 GMT

Travel back on your agenda for 2021? Tick these 6 checkboxes to have a safe trip!

02-Aug-2021 02-Aug-2021'

abhishek

Since a few weeks now, the political infrastructure of the country has slowly but steadily started encouraging its citizens to travel. There have been social media posts, newspaper articles and other media subtly hinting that travel and tourism is back in the scheme of things.

While political interest in travel is more to do with getting the Travel & Tourism and Hospitality industries back into gear, what is your take on it? Have you been bitten by the travel bug after being cooped up at home for 18+ months due to the pandemic?

If yes, it is important that you have a look at our 6 tips to have a safe trip (we promise, only 1 out of 6 will be COVID-related)!

Keep an eye on the minimum COVID-related requirements of your travel destination

In these challenging times, a bit of research from home will not only save you from disappointment once you reach your destination but will also save you a lot of time and money. Make sure your travel destination’s minimum requirements are met for all travellers before you leave home. This includes vaccination status, whether an RT-PCR Negative test will be valid for 48 or 72 hours, updated status on the Aarogya Setu app, and others.

State government websites, airline websites as well as your travel agent should be able to help with the minimum requirements in the state you are visiting.

Travel Documents

Apart from the passport, visa, tickets, and travel insurance, here is the list of essential travel documents that you must carry for a hassle-free trip:

Maps and guidebooks of the places you’re traveling to
Hotel accommodation proof
Identity documents

Debit/Credit cards

Distribute Your Money

Theft and robbery are part and parcel of a trip, for which you must be prepared in advance. Globetrotters suggest that you MUST NOT keep your money in a single place. Instead, divide and distribute it among different pockets and bags/satchels, just like you would distribute your savings in different investment options to reduce risks.

Travel Light

When traveling, always carry only important things in your bag. Be a roller when it comes to packing your clothes, because it saves space. Seasoned travellers suggest your clothes shouldn’t add up to more than one-third of your total luggage weight.

Travel Insurance

Don’t put this on the back-burner. Consult an expert and get an adequate travel insurance policy before you embark on your journey. Travel insurance will provide you financial assistance for the following undesirable circumstances:

Hospitalization resulting from accidental injury or sickness
Loss/theft of baggage or passport
Flight delay
Trip cancellation
Disability compensation resulting from an accident
Plane hijack

This applies to domestic as well as international travel insurance.

Bye-bye social media!

Traveling becomes a beautiful experience only when you put your eyes on the road and experience new cultures and lifestyles. This will require you to get a little detached from your phone. Of course, you must keep your loved ones updated, but do your best to avoid social media when traveling.

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Will your current retiral investments last for 25 years with no change in lifestyle & luxuries?

abhishek — Fri, 23 Jul 2021 06:30:00 GMT

Will your current retiral investments last for 25 years with no change in lifestyle & luxuries?

23-Jul-2021 23-Jul-2021'

abhishek

With life expectancy in India touching 80 – 85 years, retirement planning takes on a whole new meaning. While generations before us had to plan finances only until 70, the current generation has to plan finances for at least 20 – 25 years after retirement.

Let’s have a look at some quick (and scary) numbers:

When Mr. X retired in the year 2001, the retirement age was 60 years while life expectancy was averaged at 70. This means that Mr. X had only 10 years of non-earning life.
Early this year, when Mr. Y retired, retirement age stood at 60 again, while life expectancy for 2021 was averaged at 80 years, which is 10 years more than what it was 20 years ago. This leaves Mr. Y with 20 years of non-earning life. A little scary, right?
Twenty years from now (2041), when Mr. Z will retire, retirement age would still be 60 while life expectancy would be around 90 years. That would leave Mr. Z with 25 – 30 years of non-earning life. This is VERY scary.

Why worry about life expectancy?

When 60 was decided to be the retirement age, life expectancy for an Indian was 67 – 70 years. Retirement funds at 60 were enough for 7 – 10 years. However, in the last 10 – 15 years, medical advances have increased life expectancy to 80 years. Every 10 years, life expectancy increases by 5 years due to new medical technologies that are successful in extending life. Without proper financial planning, there will be no funds left to enjoy all of your retirement years in comfort.

Do you think your current retiral benefits and investments will be sufficient to sustain 20 – 25 years with the same lifestyle and luxuries you currently enjoy?

So, what’s the solution?

Planning for the first retirement at 60 is great, but planning for a second retirement at 70 – 75 is just as important. EPF and other investments will not sustain for 20 – 25 years, and being dependent on others (including children) during retirement is something to be avoided at all costs.

This is why it is necessary for one to create a safety net well in advance. There are several plans available in the market that allow you to start investing systematically for a fixed term and mature when you are close to 70. Let’s see some real-world examples (figures taken from leading plans):

Ramesh, who is 40, opts for a participating endowment plan and begins investing Rs 8,000 per month until he is 50. When he is 70, he receives close to Rs 40 lakhs at 8% RoI. Not only that, if he would have met an untimely death during the policy term, his family would receive close to Rs 8.5 lakhs as death cover.
Suresh, who is 45, chooses another participating savings plus protection plan and starts investing Rs 10,000 per month for a period of 18 years. When he is 75, he receives close to Rs 56 lakhs. Suresh’s nominees would receive approximately Rs 14.3 lakhs in case he meets an untimely end.

These instruments not only protect your retirement future but also assure your family is taken care of financially should anything untoward happen to you.

86559-86559 | support@oneinsure.com

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3 facts Google won’t tell you about Term Insurance plans

abhishek — Fri, 16 Jul 2021 06:30:00 GMT

3 facts Google won’t tell you about Term Insurance plans

16-Jul-2021 16-Jul-2021'

abhishek

Our views of life and wealth keep changing with the times. The Maruti car that you bought in 2005 because it was so fashionable at that time will never be bought by you again in 2025.

On a similar vein, since all insurance products (and especially term insurance plans) have a term of 25 – 30 years, some thought should be given to whether the decision you take today will stand the test of time. After all, you don’t want to be seen driving a WagonR ten years from now, do you?

You can own more than 1 Term Insurance plan

The sum assured (death benefit amount) of your term plan is decided based on your human life value (HLV). As you can surmise, HLV factors in your annual salary at the time of buying a term plan. So, if you have bought a term plan at age 30, its sum assured is not going to be impressive 15 – 20 years later, when your salary has become much higher and inflation is also playing a role in making your old plan’s sum assured look insufficient to take care of your family in your absence.

This is why it might be a good idea to invest in another term plan at the age of 45 – 50 to ensure all your liabilities are covered and your family won’t have to compromise on their standard of living in case you are no longer around.

What factors should decide your Term plan’s sum assured?

Here are the three most important things to consider when buying a term insurance plan:

Is it covering your immediate loans and liabilities?
Is it covering your children’s primary and higher education?
Is it covering your household expenses like the monthly bill of groceries, maidservants, driver, petrol, and so on?

Your term plan’s sum assured needs to cover these expenses. If it is doing so, you can relax – you are adequately covered!

Your ideal sum assured is 15 – 20 times your annual salary.

Your plan’s term should end along with your liabilities

People tend to buy maximum-tenure term plans, which is an indication of incorrect financial planning. Term plans are simply compensating a basic requirement for your family in your absence – your monthly income. When you are actively earning (from age 25 to 65), your monthly income pays for your loans and liabilities and your children’s education and upbringing expenses. However, once you retire, these liabilities are no longer present and therefore there is no need to compensate for them either.

If you have a maximum-tenure term plan, you not only have to pay higher premiums but you also have to keep investing in an instrument that will give you no maturity benefits even after your income has stopped. This is an unnecessary burden.

Haven't invested in a term plan yet? Speak with our product experts today.

M – 86559-86559 | E – support@oneinsure.com

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Sleek, functional and efficient – The OneInsure App

abhishek — Fri, 09 Jul 2021 06:30:00 GMT

Sleek, functional and efficient – The OneInsure App

09-Jul-2021 09-Jul-2021'

abhishek

While the Second Wave of the pandemic seems to be settling down gradually and it will soon be okay to visit physical branches, there are many reasons why installing the OneInsure app from Play Store or App Store will be beneficial. This functional app can be your one-stop shop to manage all your insurance policies, regardless of where they are bought from.

The app allows you to get the whole suite of OneInsure’s services at your fingertips.

If you have ever been troubled by any of the following challenges, the OneInsure app is tailor-made for you:

My insurance agent is not always reachable.
I have multiple insurance agents. It's inconvenient to connect with them separately.
Why can't I handle my insurance policies myself?
I have insurance policies of multiple insurance companies. Inconvenient to manage them all!
I can never remember my premium due dates.
My nominee is not informed about my insurance holdings.
Who will assist me or my nominee during the claim procedure in an emergency?

The OneInsure app is an ecosystem that helps with all of the aforementioned issues. Let's have a quick look to see how it does that.

You can store all your policies on the OneInsure app so that they are always available digitally. All the information is always handy and can be used in case of emergencies.
No more hassle of remembering your premium due dates. Once you have stored a policy on the app with all the required information, you will be reminded by the app whenever your policy is due for renewal.
You can avail an array of insurance services for all the policies you hold. Examples include generating a tax certificate, adding of a family member to your health policy, endorsement of personal information like mobile number and address with the insurer, and so much more.
During a claim scenario, an insurance policy is as useless as a piece of paper if nobody knows how about the policy or how to use it. With the OneInsure app, we inform your nominee about all the critical information that they will need if you are unable to raise a claim due to hospitalization.
OneInsure is an experienced organization with highly experienced staff in terms of service and claims.
On the OneInsure app, you can check the accumulated bonuses, surrender value, loan availability, and other vital figures for your LIC policy with a few taps of your screen. You don’t have to run to an LIC branch or call an LIC executive to check your bonuses every time. It is available right in the app. Just add your LIC policy.

If you still haven't installed the OneInsure app, this is the right time to do so!

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Standalone Policy required or Rider enough? All you need to know about Critical Illness Insurance

abhishek — Fri, 02 Jul 2021 06:30:00 GMT

Standalone Policy required or Rider enough? All you need to know about Critical Illness Insurance

02-Jul-2021 02-Jul-2021'

abhishek

The issue with Critical Illnesses is that they creep up on you all of a sudden. One day you’re feeling great and on top of the world, and the very next week you could be given news by the doctor during your routine annual medical check-up that a tumour has been found in your spine.

This is why having Critical Illness insurance by your side has become an important aspect of the urban Indian’s financial planning. A Critical Illness policy will take care of life-threatening (cancer, major organ transplant, multiple sclerosis, third-degree burns, aorta graft surgery) and lifestyle-disabling (heart valve replacement/repair, coma of specified severity, total blindness, end-stage renal disease) illnesses.

When it comes to Critical Illness insurance, you broadly have 3 different options to choose from:

Standalone Critical Illness policy
Critical Illness rider with a health insurance product
Critical Illness rider with a life insurance product

The following is a list of the components of an insurance policy under which we have first given a fair view of each option (that is, a rider and a standalone plan) and then later we have suggested what you should choose on the basis of your needs.

The Coverage Amount

The coverage amount in case of a rider depends on the base policy with which you are opting for an additional rider. Hence, it cannot exceed 30% of the coverage amount of the base policy. However, the coverage amount in case of a standalone policy is up to you.

Our Suggestion: If you want a higher cover, then a standalone policy, where you get to choose the coverage amount, is the right fit.

The Premium

The premiums of a standalone policy remain the same unless you reach a specific age. However, although the premiums of a rider taken with a life insurance policy remain constant throughout, the premium of a rider taken with a health plan increases with increasing age. But the premium amount you would pay in a standalone policy will be slightly higher compared to a Critical Illness rider.

Our Suggestion: You can either choose to pay lesser premiums and get a lower coverage amount or pay higher premiums for a higher cover. It is always a wise decision to have a higher cover, which you would get with a standalone policy.

Renewability

A standalone Critical Illness policy can be renewed lifelong while a Critical Illness rider is renewed with the base policy. So, if the base policy becomes invalid, the rider also stands invalid.

Our Suggestion: Quite obviously, a standalone Critical Illness policy is a clear winner here.

Number of Critical Illnesses Covered

The number of diseases covered in a standalone Critical Illness plan is comparatively higher than a Critical Illness rider.

Our Suggestion: A standalone plan is better if you wish to play safe and get yourself covered against as many diseases as possible.

Conclusion

In all the aforementioned parameters, a standalone Critical Illness plan comes out as the winner. For queries, call 86559-86559 or drop an email at support@oneinsure.com.

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Bring Balance to Your Life and Your Portfolio with Guaranteed Plans

abhishek — Wed, 23 Jun 2021 06:30:00 GMT

Bring Balance to Your Life and Your Portfolio with Guaranteed Plans

23-Jun-2021 23-Jun-2021'

abhishek

The Yesses

Yes, COVID-19 is still in the news
Yes, the COVID-19 surge is worse than ever in India
Yes, there is a chance India will be hit by third, fourth and more waves of the virus

The No’s

No, the virus is not going to be eradicated any time soon because of its nature to mutate
No, we may never go back to how things were pre-COVID
No, there is no guarantee the Equity markets will do well in the short or long term

Over the last year or so, life in urban India has been rocked by 2 waves of the coronavirus pandemic, both lasting months and leaving the economy reeling as well as badly shaking up the mental wellbeing of many.

Most of the earning population of the country has been impacted either directly or indirectly due to the instability of professional as well as personal life in these challenging times. Stability and balance are necessary to have a chance at a bright future post the COVID era.

In such a situation, a financial portfolio titled to favour Equity investments has the potential to be your worst enemy going ahead. What you NEED to bring balance to your portfolio is Guaranteed Return Plans. Let’s know more.

Major Issues with Investing in Equities

The unpredictable and fluctuating nature of the market
No guaranteed returns and lack of financial security
Planning for future goals is not easy
No fixed monthly pay-outs or options to replace your income
Your life is not being covered while you are invested
No tax triple tax exemption

Major Benefits of Guaranteed Return Plans

Some practical, real-life reasons and facts that prove that plans which provide guaranteed returns are the ideal in the current situation:

Irrespective of any major change in local, state, central government; global pandemics; or any other event, you are rest assured to get guaranteed returns
Once the insurer signs the policy documents, the returns are guaranteed, because these investments are further invested in government bonds and securities
Retail-inflation-beating returns
Not market-linked but guaranteed
Good plans give guaranteed, tax-free returns between 5% and 6% per annum
If you calculate for tax-free returns, the number effectively goes up to 9% (presuming 30% tax bracket)
Get the Triple Tax Exemption Benefit
- Premium-Payment Phase Exemption – Premiums paid are tax deductible [Rs 1.5 lakhs per annum as per Section 80(C)]
- Accumulation Phase Exemption – No taxation during the accumulation phase
- Withdrawal Phase Exemption – Pay-outs are tax-free under Section 10(10D)

The Variety in Guaranteed Return Plans

Here are the different guaranteed return plan options:

Endowment plans
Money-back plans
Retirement or Pension plans
Child Insurance plans

Always remember to choose a guaranteed return plan considering your age, income, needs, dependencies, and future goals.

To help you decide and select the best guaranteed plans, we have a dedicated team of financial experts just a phone call or email away:

M – 86559-86559 | E – support@oneinsure.com

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No Claim Bonus Explained! For Health and Motor Insurance Policyholders

abhishek — Wed, 16 Jun 2021 06:30:00 GMT

No Claim Bonus Explained! For Health and Motor Insurance Policyholders

16-Jun-2021 16-Jun-2021'

abhishek

Most health and motor insurance policyholders do not file a single claim in a policy year. Insurance companies have a provision that rewards those who do not file a claim in a policy year, known as the No Claim Bonus. It is a reward given to the policyholder for every claim-free year.

No Claim Bonus on health insurance policies

In the case of health insurance policies, there are two types of No Claim Bonuses offered – first is a reduction of premium due and second is an increase in sum assured amount the year immediately after a claim-free year.

Example of NCB effects on a health plan

Mr. Kumar had bought a health insurance cover of Rs 3,00,000 in the year 2019. His policy is active and he pays premiums regularly. In 2020, he was not hospitalized at all and made no claims. Therefore, his insurer gave him a benefit of 10% (or as specified) on his coverage amount, which is Rs 3,00,000. Consequently, Mr. Kumar has a total of Rs 3,30,000 (3 lakhs + 10% of 3 lakhs) to claim in case of medical emergencies for the year 2021.

No Claim Bonus on Motor Insurance Policies

For motor insurance policies, No Claim Bonus takes the shape of reduced premiums after every claim-free year. This discount goes up every year (limit is 5 continuous years) provided no claim is filed.

Generally, the No Claim Bonus on premiums can range anywhere from 20% to 50%. This may vary from policy to policy.

No Claim Bonus Protector for Motor Insurance Policies

In a typical insurance policy, if you make even a single claim, your No Claim Bonus for the next year becomes 0%. This means that in order to avail NCB discount, you have to be careful not to make any insurance claims on your policy.

A No Claim Bonus protector protects your NCB in case of claims. An NCB protector add-on cover can prove to be useful as it can provide added financial protection at the time of policy renewal.

Transfer of No Claim Bonus in Motor Insurance Policies

The NCB feature is associated with the policyholder, not with the vehicle. Usually, when policyholders buy a new vehicle, they forget about the accrued NCB of their old vehicle. Thus, they end up paying the entire premium for their new vehicle.

If you have NCB accrued on your old vehicle, you should get the NCB certificate before you dispose of the vehicle and claim the NCB discount on the new vehicle’s insurance premium. This is doable even if you change the insurance provider.

If you have availed the NCB protector with your plan, then that will also be transferred to the new insurance company if you transfer your policy.

Note that NCB benefits cannot be transferred from a two-wheeler policy to a four-wheeler policy and vice versa.

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4 ULIP Myths You Never Should Have Believed

abhishek — Wed, 09 Jun 2021 06:30:00 GMT

4 ULIP Myths You Never Should Have Believed

09-Jun-2021 09-Jun-2021'

abhishek

Over the last few years, the urban Indian’s financial portfolio has been undergoing large changes. While earlier we used to set our expectations on tangible investments like Gold, Real Estate, and FDs, we are now moving away from those investments and going for more abstract investments like Mutual Funds, Equities, and PPFs.

While the Mutual Fund industry has marketed their products intensely, the market-linked product that the Insurance industry has to offer, named Unit-Linked Insurance Plans (ULIPs), enjoys a poor reputation in comparison. Earlier, neither the insurance companies nor their customers were comfortable with an insurance product that could be used as an investment.

However, a lot has changed over the years. These products are not only more transparent today but are also the perfect combination of insurance and investments. They give the same returns as mutual funds while also having advantages such as tax savings, life cover for your family, lower fund-management charges, and others that mutual funds do not provide.

In this piece, we have debunked a few myths that still persist about ULIPs.

Myth 1: ULIPs deduct considerable amounts from your investments

ULIPs today are advertised and sold online, which helps in reducing costs because of low customer acquisition costs as well as no agent commissions. Additionally, IRDAI has put a cap on fund-management charges.

Myth 2: ULIPs have high fund-management charges

ULIPs have 5-year lock-ins, which result in lower fund-management charges. The logic being that a fund manager for mutual funds has to generate profits in the short term, whereas the same job for a ULIP is done with the comfort of having at least 5 years to make money systematically and steadily.

Myth 3: A combo of term insurance and mutual funds are better than ULIPs

ULIPs hold the same weight in the share market as mutual funds. Crafted to be share market investment products, its life insurance pay-outs are more along the lines of “additional value” rather than being the main purpose of the plan. A massive pay-out is possible if you opt for a high sum assured and invest your money in safe funds.

Moreover, term plans are not investments since they have no inherent value. And, while an investment in mutual funds offers quick profits, it is a short-term commitment that comes with additional burdens such as high risks and management hassles.

Myth 4: Insurance is an expense; it should be treated as one

This was true 10 years ago when the Insurance industry had simple products to protect families from financial burdens. Insurance companies now offer holistic products, which on their own are enough to build a strong financial portfolio.

To conclude, ULIPs today have become all-rounder plans that are a must-have if you are looking to build a strong portfolio. ULIPs are now available integrated as child plans, money-back plans, and other plans. These plans can rightfully be termed as “evolved”.

To speak to ULIPs experts, contact OneInsure at 86559-86559 or support@oneinsure.com.

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There’s no “Later” once you’re gone! Fix errors that could lead to Claim rejection NOW

abhishek — Wed, 02 Jun 2021 06:30:00 GMT

There’s no “Later” once you’re gone! Fix errors that could lead to Claim rejection NOW

02-Jun-2021 02-Jun-2021'

abhishek

There’s no escaping it.

Even though we are in the year 2021 and medical science is supposed to be state-of-the-art, the reality is that over the last 18 months or so, mortality among humans has increased manyfold. While COVID continues to wreak havoc, it has increased mortality not just via the virus but with the stress and anguish that has accompanied it as well. Numbers from around the globe show the incidents of cardiovascular events (like heart attacks) and other stress-related events are on a sudden spike since early 2020.

In short, YOU NEVER KNOW.

So, if you own a life insurance policy, be sure you have not made one of the following errors, which could result in the claim being rejected by the insurance company after you have passed away.

Concealing important information

Concealing important information from your insurer while signing up for an insurance policy is a big no-no! You might be tempted to lie about your smoking or drinking habits or conceal the fact that you love adventure sports in order to pay lesser premiums. However, the devastating effects of this error may have to be borne by your family as the insurance company rejects the claim and all your financial planning becomes useless because of a small lie so many years ago.

You forgot to update the details of your nominee

Let's say your nominee is no more and you forgot to update the details of your new nominee with the insurance company. In such a scenario, the insurance proceeds or death benefit will be paid out to your legal heir. Also, remember that your last will and testament will supersede your nomination, so ensure that the former is in sync with the latter and the rightful nominee gets the benefits.

The ultimate objective of getting a life insurance policy is that the insured person’s dependents stand to receive financial assistance through the policy even in the absence of the family’s breadwinner. The policy brings peace of mind to the insured as well as his dependants, who know that they are not only financially secure, but they also won’t have to put an end to their aspirations and goals due to financial constraints no matter what.

For an instrument that is so vital in a person’s financial planning, it is always a good idea to be 100% sure there are no loopholes and the sum assured will be given to your appointed nominee without any hiccups if and when the time comes.

OneInsure's insurance experts would love to solve any of your insurance-related queries. Feel free to call 86559-86559 or email us at support@oneinsure.com.

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